Under what circumstances related to assignment of debit/credit authorizations can Atwell Suites refuse to acknowledge an assignment?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
icense; and (b) we may suspend the Services, declare an Event of Default, and exercise any of our other rights under the Agreement.
- 11.2 Material Changes. You will provide us reasonable advance written notice of any material change in the nature of your business ("Material Change"). Material Changes include any change in control or merger; any liquidation; any transfer
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, Atwell Suites has the option to refuse to acknowledge the assignment of debit and credit authorizations. Specifically, Atwell Suites may refuse to acknowledge the assignment unless it is accompanied by an authorization to initiate both debits and credits to the bank account of the assignee.
This provision protects Atwell Suites by ensuring that any assignee taking over the financial responsibilities of a franchise location has the proper authorization to manage the financial transactions associated with the business. This requirement helps to maintain financial control and accountability within the Atwell Suites franchise system.
In addition to refusing to acknowledge the assignment, Atwell Suites also has the option to terminate the agreement immediately or charge for any transfers that they are called upon to make manually to fulfill such an assignment at a rate of $100 per transfer. This provides Atwell Suites with multiple options to address unauthorized or improperly documented assignments, allowing them to choose the most appropriate course of action based on the specific circumstances.